Blockchain Basics and Applications for Small Business
Blockchain is a digital ledger of all transactions of value. (e.g.Money,voting right). Blockchain stores information in decentralized manner and uses cryptography to record and validate all the transactions.Imagine blockchain as Google Spreadsheet , stored at multiple locations , publicly accessible.
Each block of transaction is connected to the earlier entry to create a chain. For every transaction a new address is created using complex algorithms
Every record is validated every 10 mins by the Miners.Miner are enhanced hardware machines on the network. Miners are rewarded for validating the block of transaction and writing it to the ledger using digital currency. 51% of the miners have to agree this is a valid data for the transaction block to be committed. There can be only 21 million bitcoins.Block chain concept is implemented on opensource Etherum.
Using this concept of blockchain there are many applications that can be used by small businesses
1 Digital Currency – Bitcoins
The value of the Bitcoins is calculated as Storage Wealth + Transaction Amount/Total num of bitcoins
The transactions are auditable and transparent , ensuring there is no middleman. International transfer can be performed at reduced cost.
2 The blockchain could also assist retailers that offer gift cards and loyalty programs by making the process cheaper and more secure by cutting out the middlemen and using the blockchain’s unique verification capabilities. GyftBlock which is a partnership between Gyft and bitcoin API developer Chain, issues digital gift card that can be securely traded on the blockchain’s public ledger.
3 Digital Identity
4 Resale transaction tracking = Passage X for concert tickets and similar can be applied to car, home and resales.
This is just scratching the surface of a new sensation BlockChain. It is to get you interested in a new technology and explore be an individual, Business or a developer. Its pretty intriguing.
Will leave you with a question Who issues Bitcoins ?